Save Submit Assignment for Grading ions Check My Work O Click here to read the e

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Save Submit Assignment for Grading ions Check My Work O Click here to read the eBook: Future Values REACHING A FINANCIAL GOAL Six years from today you need $10,000. You plan to deposit $1,500 annually, with the first payment to be o I made a year from today, in an account that pays 6% effective annual rate. Your last deposit, which will e occur at the end of Year 6, will be for less than $1,500 if less is needed to reach $10,000. How large will your last payment be? Round your answer to the nearest cent. $ 1544.3 Hide Feedback Incorrect Check My Work

Explanation / Answer

=$1,037.022

Hence the last payment will be $1,037.02

Solution:- The last payment can be calculated as follows :- 10000-{1500*(1.06)^5+1500*(1.06)^4+1500*(1.06)^3+1500*(1.06)^2+1500*1.06} =10,000-(2007.338+1893.715+1786.524+1685.4+1590)

=$1,037.022

Hence the last payment will be $1,037.02

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